Published on November 2nd, 20100
Pendulum swinging away from cost cutting towards revenue growth
The aim of IT projects is shifting as the recession ends, with research from IDC stating that the emphasis on efficiency is being replaced by a greater focus on improving customer service and revenue generation.
Modest improvements in IT service spending will continue through 2010 according to the analyst, but annual growth of IT spending is set to reach 2.3 per cent by 2014 as businesses emerge from a sustained period of caution and begin to focus on investment to improve.
Douglas Hayward, research manager at IDC, warns that there is no simple template for spending that will guarantee return on investment. “While there are several drivers of new spending interest coming from within the world of IT services and business services, such as virtualisation and cloud computing, the fact is that there are no technology-related and outsourcing-related ‘silver bullets’ any more that can drive spending on service independently of the economic environment. IT services and business services are no longer a special case.”